Cabo Verde Tourism Chamber contests airport security tax hike

The Cabo Verde Tourism Chamber (CTVC) has expressed discontent with the government's decision to raise the Airport Security Tax (TSA) from 3,400 to 4,400 escudos. The new tariff, which came into effect on November 3, has been criticized for lacking predictability and prior consultation with the tourism sector. According to the CTVC, this sudden increase will cause financial losses for national tourism operators, particularly those in the incoming tourism segment.

The CTVC's Secretary-General, Américo Monteiro, explained that the tourism sector operates seasonally, and packages for the current winter season have already been sold and invoiced based on the previous TSA value of 31 euros. Monteiro stated that the electronic pre-registration system (EASE) requires national agencies to pay the updated amount for already booked reservations, resulting in direct financial losses for each air operation.

To mitigate the impacts on the sector, the CTVC has proposed to the government that the new tariff be postponed until May 1, 2027, for pre-registered entries by accredited incoming tourism agencies. The Chamber also suggests that the tariff update should only apply to border posts and individual tourists who pay directly on the electronic platform, and that a formal consultation mechanism be established between the government, CTVC, and operators for future tax revisions.

Américo Monteiro emphasized that if there had been a three-month notice period, it would have allowed the incorporation of the new value into prices for the current season, avoiding the current situation. He distinguished between pre-contracted packages and tourists traveling on low-cost flights, who pay the tax directly at the border.

The CTVC's proposal aims to alleviate the financial burden on tourism operators, who have already committed to selling packages at the old TSA rate. If the government does not accept the proposed moratorium, the Chamber recommends implementing a refund mechanism for accredited agencies to compensate for the difference in TSA rates for already booked entries.

The CTVC's concerns about the TSA hike highlight the need for greater consultation between the government and the tourism sector. The Chamber's proposals aim to find a balance between the government's revenue goals and the sustainability of the tourism industry, which is a significant contributor to Cabo Verde's economy.

The government's decision on the CTVC's proposal remains to be seen. The tourism sector is eagerly awaiting a response, as the implementation of the new TSA rate continues to cause uncertainty and financial losses for operators.

Key points

• The Cabo Verde Tourism Chamber has proposed postponing the airport security tax hike until May 1, 2027, to alleviate financial burdens on tourism operators.